FAQ: Can the Monthly Employer Declaration (EMP201) have a negative amount?
The Pay-As-You-Earn (PAYE) on the EMP201 may not result in a negative amount. Where the calculated Employment Tax Incentive (ETI) is more than the PAYE liability, an amount equal to the PAYE liability may be utilised, which will result in a zero (0) amount payable. The remaining amount of ETI will be carried forward to […]
FAQ: What do I do if an employee doesn’t qualify each month?
In determining the first or the second 12 month period, only the months in which the employee qualifies are taken into account. For example, the employee may be a qualifying employee in the first three months but not in the fourth and the fifth months. If the employee is a qualifying employee in the sixth […]
FAQ: I live overseas and I’m the heir of my parents’ estate, is there anything I must know on how to go about receiving the inheritance?
If you live overseas and are likely to be the beneficiary of either an inheritance or a trust distribution from within South Africa careful consideration should be given to your status from the perspective of the South African authorities, given the potential impact of exchange control regulations. Without some advance planning there is a risk […]
FAQ: I’m to inherit a sizable sum of money and property in Portugal and want to bring the money into South Africa. Will I be taxed?
You will not be taxed on bringing the inherited monies into SA. You will have to produce a copy of the final liquidation and distribution account to verify the source of the money and will have to disclose the monies you’ve inherited on your next tax return. You also need to request a copy (and […]
FAQ: Do you include an inheritance of a house when calculating taxable income before you dispose it?
If you inherited a house then there is no tax on the actual inheritance, however the value of the house on the day you inherited it will be the base cost for Capital Gains Tax purposes. When you eventually dispose of this property, it will be subject to Capital Gains Tax.
FAQ: Who is responsible for income tax on interest on an inheritance?
The person who received the inheritance must declare interest earned on the investment.
FAQ: Will the Employment Tax Incentive (ETI) be applicable to employers who has received ministerial determination to pay a different minimum wages from the sectorial determination for farmworkers?
The ETI will be applicable as long as the employer pays the ministerial determination wage and all the other requirements are met.
FAQ: Will the sale of my primary home be subject to CGT?
For the 2013 to 2019 years of assessment the first R2 million of a capital gain or loss on disposal of a primary residence must be disregarded (2007 to 2012: R1,5 million). This concession, known as the primary residence exclusion, means that most individuals will not be subject to CGT on the sale of their […]
FAQ: What is a primary residence?
A residence must meet certain basic requirements before it can qualify as a primary residence (Paragraph 44 of the Eighth Schedule). It must be a structure, including a boat, caravan or mobile home, which is used as a place of residence by an individual. An individual or special trust must own an interest in the […]
FAQ: Do I qualify for the Employment Tax Incentive (ETI), if my employees are paid on the commission bases?
As commission is not a wage, it doesn’t allow the employer to claim the ETI. Where an employee receives a basic wage (salary) plus commission, the employer will be allowed to claim the ETI, provided the qualifying requirements are met, on the basic wage (salary) only.
